Abstract

Purpose of this study is to compile data on general features, capital structures, dividend policies, financial characteristics of small and medium sized enterprises (SMEs) in Turkey and views of managers of them on the impact of these features on their growth, and to transform these data into knowledge, besides provision of recommendations. Sample of study is formed by 34 SMEs in various sectors in Istanbul. Descriptive and relational research methods are employed in the study. In order to collect unbiased and appropriate data for statistical analysis in descriptive research method, questionnaire technique is used as the data collection method. Data is collected in face to face interviews carried in first half of 2009. Data is analysed with computer software; statistical package for social sciences (SPSS). Central tendency and dispersion techniques are used for data analyses. Cross tabulation test is employed to determine differences among selected variables. Tests are yielded that SMEs grow those are with strong capital structure depending on its own, not preferring heavy borrowing, strengthening its financial structure continuously, improving its capacity utilisation rate and its revenue, and retain profit to strengthen capital.

Keywords: SME, financing, economic growth.